A total of R7.1 billion has been allocated in an equitable share grant to municipalities for the maintenance of infrastructure and to cover the cost of free basic services to indigent households in 2023/24.
This was revealed by Finance Minister Enoch Godongwana when he was responding to EFF MP Khaya Ceza, who asked about fiscal proactive measures he had taken to resolve ageing infrastructure, particularly in rural municipalities.
Godongwana said the minister of finance was not directly responsible for managing any major infrastructure budgets, as such budgets resided within the appropriate national and provincial departmental budgets, municipal budgets or a public entity or state-owned entities.
“Each organ of state is responsible for maintaining appropriate and effective infrastructure budgets. From a national budget perspective, it is recognised that the issue of ageing infrastructure in South Africa has been a long-standing challenge, including for both rural and urban municipalities,” he said.
Godongwana said there had been some proactive measures taken to address the issue of infrastructure budget.
“Since the 2013/14 financial year, the local government equitable share (LGES) includes a maintenance estimate of 10%. This amounted to R5.6bn in maintenance funding for municipalities to recover the cost of providing free basic services to indigent households in 2021/22, and it will be R7.1bn in 2023/24.
“These funds are unconditional transfers, meaning that they are discretionary in nature so the municipality has the choice of whether to use them for maintenance or any other priority or budget commitment.”
The minster added that several reforms had been implemented following the review of infrastructure conditional grants in 2014.
“The Municipal Infrastructure Grant (MIG) includes provisions for infrastructure renewal and upgrades, a provision for road maintenance projects, as well as the ability for municipalities to develop Infrastructure Asset Management Plans using 5% of their allocations,” he said, adding that small and rural municipalities were the main beneficiaries of MIG.
Godongwana said the government had also provided training and capacity-building programmes for municipal officials and staff to improve their skills and knowledge in infrastructure planning, management and maintenance.
“Since 2012, we have been pioneering the development of critical infrastructure delivery skills in municipalities through the implementation of the Infrastructure Skills Development Grant (ISDG).
“Since its inception, more than 300 people have been professionalised and/or certified within the built environment. These professionals then exercise their expertise to manage, operate and maintain public sector or municipal infrastructure,” he said.
“These proactive measures are aimed at improving the quality of infrastructure in rural municipalities, which is critical for the provision of basic services, promoting economic growth, and improving the quality of life for rural communities," Godongwana said.
Cape Times